New York Truehttp://www.newyorktrue.com
Insight, analysis and reporting on New York and national politicsFri, 31 Jul 2015 15:35:06 +0000en-UShourly1http://wordpress.org/?v=4.0.6Pataki Campaign Money: Chapter 1http://www.newyorktrue.com/pataki-campaign-money-chapter-1/
http://www.newyorktrue.com/pataki-campaign-money-chapter-1/#commentsFri, 31 Jul 2015 15:34:39 +0000http://www.newyorktrue.com/?p=4998Continue reading →]]>The good news for George Pataki – his presidential campaign reports having over 80% of the money it’s raised still on hand, spending less than 20%. The bad news for George Pataki – the amount on hand totals just over $200,000.

In his initial campaign finance report the former New York governor reported raising $255,000 and spending $48,000. This filing covers the 2nd quarter of 2015, April 1 to June 30th. Pataki’s campaign committee was created on May 19th, just ahead of his May 28th formal announcement in Exeter, New Hampshire and his June 2nd FEC “Statement of Candidacy”, so it’s a shortened time period of actual fundraising.

The amount raised by Pataki’s campaign is meager, able to fund some low-cost trips to New Hampshire and Iowa, but not nearly enough to truly compete. There’s a significant known unknown, however. Pataki created a super PAC in early January and that super PAC, “We The People, Not Washington”, has yet to file its initial report. Super PACs may raise unlimited amounts, with no contribution limits, so a small number of (or even a single) wealthy and willing contributors can provide substantial funding for a presidential bid. Pataki’s financial outlook could be dramatically different, depending on his super PAC’s results. (Stay tuned – we’ll update you on the super PAC filing as soon as its available.)

Contributors:

Pataki’s campaign committee report is heavy on longtime supporters and staff, with little to suggest any expansion of his fundraising base. Here’s a brief look at some of those contributors.

Catherine Blaney: Blaney was Pataki’s chief fundraiser during his years as governor and has worked for many other candidates, including Andrew Cuomo.

John Cahill: Cahill was Secretary to Governor Pataki and has been partners with Pataki in both their own consulting firm and at the law firm of Chadbourne & Park. He was the 2014 Republican nominee for NYS Attorney General.

Bernadette Castro: Castro was Pataki’s Parks Commissioner throughout his three terms.

Thomas Doherty: He held several senior positions with Governor Pataki, including Deputy Secretary for Appointments.

Preston Felton: A career member of the NY State Police, Felton was Acting Superintendent of the State Police during Eliot Spitzer’s term and was ensnared in the “Troopergate” fiasco.

Kieran Mahoney: Pataki’s chief political strategist, Mahoney worked on all three of Pataki’s gubernatorial campaigns.

Among Pataki’s other contributors are George Demos, who’s run in several bitter NY-1 congressional district Republican primaries, and James Pappas of PJ Mechanical Corp. Pappas and PJ Mechanical were indicted by Manhattan DA Cy Vance in 2011, charged in a multi-defendant scheme to defraud construction clients. (Initial searches have not produced any news reports on the disposition.)

Expenses:

The campaign does not report paying any employees. It does report paying campaign manager Vincent Balascio as a consultant. The campaign’s other reported expenses include office rent, “media engagement services”, “Website Development”, “Rally Equipment Rental”, Printing” and “Merchant Fee”.

The City Hall Plaza press conference, hosted by the Hispanic Federation, called for a laundry list of federal actions, including implementing “a federal investment plan”, eliminating Jones Act requirements that goods shipped between Puerto Rico and other places in America be transported on U.S. ships with U.S. crews, changing the U.S. bankruptcy code to allow Puerto Rico and its government related enterprises to file bankruptcy petitions and urging President Obama to “explore a Federal Reserve loan” and “oppose severe austerity.”

Puerto Rico’s crisis is decades in the making. With a shrinking population and a shrinking economy Puerto Rico has long borrowed to fund operating costs. As described in a recent report commissioned by the Puerto Rican government, Puerto Rico’s fiscal shortcomings have been masked and ultimately worsened by poor fiscal and accounting practices.

The press conference produced an infrequent appearance of all three citywide elected officials and Council Speaker Melissa Mark-Viverito – the “CW3+MMV”, perhaps – at an event. There appeared to be polite interaction among them, but no sign of great warmth.

The demand that federal law be amended to permit Puerto Rico to file a bankruptcy petition has a reasonable likelihood of happening and could be beneficial. Like states, Puerto Rico is currently not eligible to be a debtor under the bankruptcy code. Chapter 9 of the bankruptcy code covers municipal bankruptcies, with “municipalities” defined as a “political subdivision [counties, cities or towns] or public agency or instrumentality of a State”, but not states themselves. Filing a petition and operating under the bankruptcy code can provide a useful organizational forum for beleaguered debtors such as Puerto Rico, as creditors are prevented (“stayed” in bankruptcy terms) from taking individual actions to collect their debts and the bankruptcy court oversees a comprehensive addressing of all creditor claims. It does, however, potentially provide for outcomes that today’s speakers may regret as the bankruptcy court has the power to approve austerity-driven spending cuts anathema to many of the people now seeking bankruptcy court access for Puerto Rico.

Amending the bankruptcy code to treat Puerto Rico as a municipality, and unlike a state, touches on a deeper issue. Puerto Rico’s status as a commonwealth, as opposed to a state or an independent country, will likely become a greater focus as the crisis unfolds. Any relief from the federal government will, and should, involve addressing the Puerto Rican government’s past fiscal mismanagement and changing it’s future functioning. Considering how to address those past government failures and plan for an improved future will lead to a basic question: what should that government be? A somewhat modified commonwealth? A state with all the sovereign powers of the 50 states? A separate nation? That ever-present question has received little national attention recently, but will likely be a substantial part of any meaningful federal assistance.

Paradoxically, some of the relief sought by the speakers is at odds with their own political views. The changes sought to the Jones Act, for example, would reduce the use of American workers and move jobs to other countries. The Jones Act requires, in relevant part, that goods shipped between U.S. ports be carried on ships built and flagged in the U.S. and that at least 75% of each such ship’s crew be U.S. citizens. Those requirements increase the cost of shipping virtually everything between Puerto Rican and other U.S. port, but protect American jobs.

Finally, it’s notable that among Puerto Rico’s many economic challenges are labor and wage laws that, in the words of the Krueger Report, “are disincentives for firms to hire workers and for workers to accept jobs.” Among those disincentives is the federal minimum wage of $7.25 an hour, which applies to Puerto Rico. Puerto Rico has far lower wages generally than any other part of the United States and, in the Krueger Report analysis, that $7.25 minimum wage destructively distorts the Puerto Rican labor market. It’s worth looking closely at the effect of such a relatively high minimum wage in the context of New York and national consideration of increasing the minimum wage.

Mark-Viverito, de Blasio, James and Stringer each left after giving their remarks, without any Q&A. Here are their respective remarks:

Melissa Mark-Viverito:

Mark-Viverito, who grew up in Puerto Rico, termed it “disheartening” that the federal government is turning a “blind eye” to Puerto Rico’s troubles. She castigated hedge fund “vultures” for, in her view, worsening Puerto Rico’s condition and “feeding off of the misery of the island and of the people”. Mark-Viverito also said that during a brief meeting with Vice President Joe Biden at Governor Cuomo’s LaGuardia announcement Monday, she said that “Puerto Rico needs to be saved.” Mark-Viverito aptly noted the importance of “main stream media” at this press conference, as any substantial federal action is more likely with greater public awareness and interest.

Mayor Bill de Blasio:

Mayor de Blasio described this as a “crisis largely created by mistakes of federal policy that now has to be corrected by federal action.”

Public Advocate Tish James:

Saying she was speaking “in solidarity with our Puerto Rican brothers and sisters”, Public Advocate James urged President Obama to “act now.”

Comptroller Scott Stringer:

Comptroller Stringer noted that his stepfather is Puerto Rican and that his mother and stepfather have a home in Puerto Rico. He likened the current Puerto Rico crisis to New York City’s 1970s fiscal crisis and pledged to work with “Puerto Rican leadership” to find a way through the crisis. He did not discuss whether the City’s pension funds have any involvement or investment with the “vulture” hedge funds Mark-Viverito criticized.

]]>http://www.newyorktrue.com/nyc-electeds-demand-federal-assistance-for-puerto-rico/feed/0Cuomo Gaggles: The Point Breeze Edition (Updated)http://www.newyorktrue.com/cuomo-gaggles-the-point-breeze-edition/
http://www.newyorktrue.com/cuomo-gaggles-the-point-breeze-edition/#commentsFri, 17 Jul 2015 21:21:33 +0000http://www.newyorktrue.com/?p=4969Continue reading →]]>Governor Andrew Cuomo came to Breezy Point this afternoon, holding a bill signing ceremony at the Point Breeze Clubhouse. Joined by State Senator Joe Addabbo and State Assembly Member Phil Goldfeder, Cuomo signed into law a bill extending an exemption for Breezy Point residents from an pre-existing requirement that they obtain a special permit from New York City for rebuilding or repairs. Cuomo also announced a state study of raising the elevation of homes in Breezy Point.

Cuomo spoke with the press following the signing ceremony. Question topics included Bill de Blasio (multiple times), Uber, Cuomo’s recently increased rate of public appearances, concerns expressed by district attorneys on Cuomo’s executive order appointing the NYS attorney general as a special prosecutor in all police killings of unarmed civilians and the City’s Sandy recovery programs.

Update – Uber:

Cuomo suggested that his administration will wade into the escalating confrontation between Uber and the de Blasio administration:

]]>http://www.newyorktrue.com/cuomo-gaggles-the-point-breeze-edition/feed/0Bronx Love: The Cuomo/de Blasio Editionhttp://www.newyorktrue.com/bronx-love-the-cuomode-blasio-edition/
http://www.newyorktrue.com/bronx-love-the-cuomode-blasio-edition/#commentsFri, 17 Jul 2015 02:59:06 +0000http://www.newyorktrue.com/?p=4963Continue reading →]]>There was lots of Bronx love tonight for Governor Andrew Cuomo and Mayor Bill de Blasio – but no sign of any love between them as they separately appeared at the Bronx County Democratic Committee dinner.

Cuomo arrived slightly after his scheduled 7:00 speech time, mixing for a few minutes. He stayed for a short while after his speech, listening to Carl Heastie speak before departing. He spoke briefly with a few reporters, concluding that Q&A and driving off just before 8:00. Mayor de Blasio, scheduled to speak at 7:30, arrived about 5-10 minutes after Cuomo’s departure.

Cuomo was asked about his continuing friction with the Mayor and what’s evolved into mutual silent treatment. “He is not here, I’m going to another event” said the governor about 20 minutes after the scheduled start time of the mayor’s speech, adding after a pause “I’m sure I’ll see him soon.” The governor appeared relaxed and his additional comments were a bit empathetic, but he didn’t give any indication that improved relations are in the offing.

The Mayor spent close to 30 minutes greeting well-wishers after his speech, but left without answering any questions from trailing reporters. His spokesperson said that Cuomo and de Blasio “will speak in the near future”, but refused to say when or where.

While the mini-drama is riveting, and offers the prospect of a good picture whenever the two finally meet, it’s beyond time for them to end it. Their real policy and political differences won’t be resolved by a simple meeting, but the diminishment that they’re now both receiving can end. Both look increasingly petty, but there’s a simple way for at least one of them to staunch that diminution and look “grown up” – just drive over to the other’s office, go in and say hello.

]]>http://www.newyorktrue.com/bronx-love-the-cuomode-blasio-edition/feed/0Cuomo On de Blasiohttp://www.newyorktrue.com/cuomo-on-de-blasio/
http://www.newyorktrue.com/cuomo-on-de-blasio/#commentsThu, 16 Jul 2015 21:04:57 +0000http://www.newyorktrue.com/?p=4960Continue reading →]]>We work, we do our jobs. That was the essence of Governor Andrew Cuomo’s response when asked today about his well-publicized friction with Mayor Bill de Blasio.

He confirmed that he has not spoken with Mayor de Blasio recently. Both men are expected to attend a Bronx County Democratic Committee dinner tonight, with speeches scheduled 30 minutes apart.

Here’s what he had to say:

Cuomo spoke during a Q&A at Hostos Community College – the full Q&A is here.

]]>http://www.newyorktrue.com/cuomo-on-de-blasio/feed/0Cuomo Legal Defense Feeshttp://www.newyorktrue.com/cuomo-legal-defense-fees/
http://www.newyorktrue.com/cuomo-legal-defense-fees/#commentsThu, 16 Jul 2015 20:48:46 +0000http://www.newyorktrue.com/?p=4956Continue reading →]]>Governor Andrew Cuomo’s campaign committee revealed yesterday that it has paid an additional $100,000 to Cuomo’s criminal defense lawyers. In a required semi-annual filing Cuomo’s campaign listed a June 10th $100,000 payment to Morvillo Abramowitz Grand Iason & Anello. Cuomo was asked about that payment, and whether it means “the Executive Chamber is being targeted by the U.S. Attorney investigation” reported to be underway by the United States Attorney for the Southern District of New York.

Cuomo replied that the payment was “just another installment in the legal fees that were for services last year, basically for document production.” He did not provide any more description or detail, so it’s unclear what services his outside counsel have provided. His reference to the payment being for “services last year” raises additional questions of what work those lawyers have performed in the past 6 1/2 months. It also suggests an omission from Cuomo’s January campaign finance filing. Campaigns are required to report, on Schedule N of their semi-annual reports, “outstanding liabilities for goods or services received.” Cuomo’s January filing reported four items on it’s Schedule N, but none to Morvillo Abramowitz. If the services covered by the June payment were in fact performed in 2014, and therefor prior to the January 2015 report, the Cuomo campaign’s debt should have been reported in January.

Here’s Cuomo’s full response:

Cuomo spoke during a Q&A at Hostos Community College – the full Q&A is here.

]]>http://www.newyorktrue.com/cuomo-legal-defense-fees/feed/0Cuomo Gaggles: The Bronx Editionhttp://www.newyorktrue.com/cuomo-gaggles-the-bronx-edition/
http://www.newyorktrue.com/cuomo-gaggles-the-bronx-edition/#commentsThu, 16 Jul 2015 18:11:37 +0000http://www.newyorktrue.com/?p=4954Continue reading →]]>His criminal defense lawyer legal fees, Donald Trump, homelessness, the MTA and his “friend” feud. It was a regular Bronx day for Governor Andrew Cuomo as he spoke with the press this morning. Cuomo appeared at the South Bronx’s Hostos Community College to sign legislation intended to protect nail salon workers and to announce a state government task force “to root out worker exploitation issues in multiple industries in New York State.”

Assembly Speaker Carl Heastie and New York State AFL-CIO President Mario Cilento joined Cuomo as he spoke with the press, although neither had any questions directed their way. Here’s Cuomo’s full post-ceremony gaggle:

]]>http://www.newyorktrue.com/cuomo-gaggles-the-bronx-edition/feed/0de Blasio Press Q&A: The 20,000 Units Editionhttp://www.newyorktrue.com/de-blasio-press-qa-the-20000-units-edition/
http://www.newyorktrue.com/de-blasio-press-qa-the-20000-units-edition/#commentsMon, 13 Jul 2015 23:28:11 +0000http://www.newyorktrue.com/?p=4944Continue reading →]]>Mayor Bill de Blasio today touted a high level of affordable housing activity in the City, reporting that the City “financed the creation and preservation of 20,325 affordable apartments and homes during fiscal year 2015.” de Blasio spoke at a Bronx press conference, accompanied by Council Speaker Melissa Mark-Viverito and several Bronx elected officials including Borough President Ruben Diaz Jr., Congressman Jose E. Serrano, State Senator Jose M. Serrano and Assembly Members Luis Sepulveda, Michael Blake and Latoya Joyner.

Puerto Rico:

Mayor de Blasio and Council Speaker Mark-Viverito both expressed support for federal government action to address Puerto Rico’s deep fiscal crisis. de Blasio suggested federal financial assistance, urging the federal government to “take responsibility” for resolving the crisis and that it has both the “obligation” and “capacity” to do so. Mark-Viverito suggested a change in federal bankruptcy law to allow Puerto Rico to file a bankruptcy petition and operate as a debtor under federal bankruptcy law (Puerto Rico, like states, is not eligible to do so). Here are their full answers, including the Spanish portion of Mark-Viverito’s.

On-topic question topics included the amount of HPD funding in this specific project, possible changes in City Planning Commission rules on building height, how many of the 20,000 units reported by the Mayor were new construction and how many were preservation work, how people can seek to live in the units being constructed at this specific project and a lawsuit challenging the City’s community preference policy. Off-topic question topics included how the Mayor plans to mark the anniversary of Eric Garner’s death and how the NYPD has changed in the intervening year, the recent MOU between Governor Cuomo and the Senate Republicans concerning the SAFE Act, how the Mayor will deal with growing homelessness (he answer began by stating that it’s not growing), an expected lawsuit by Eric Garner’s family, Hillary Clinton’s speech today, the specific homeless man extensively covered by the NY Post recently, the Mayor’s continuing efforts at implementing a ban on carriage horses, Puerto Rico’s fiscal crisis

Here is May de Blasio’s full Q&A:

]]>http://www.newyorktrue.com/de-blasio-press-qa-the-20000-units-edition/feed/0Ticker Tape Parade Sights & Sounds (Updated)http://www.newyorktrue.com/ticker-tape-parade-sights-sounds/
http://www.newyorktrue.com/ticker-tape-parade-sights-sounds/#commentsSun, 12 Jul 2015 12:47:06 +0000http://www.newyorktrue.com/?p=4929Continue reading →]]>They waved, they screamed, they loved. Hundreds of thousands of fans enveloped the U.S. women’s national soccer team in a blanket of adoration Friday, as the team was feted in a ticker tape parade up Broadway and ceremony at City Hall Plaza. The volume of paper raining down was modest in this post-ticker tape era, but the sound volume of the crowd was immense as screams and shouts of “Abby” and “I love you” filled the air.

It was Mayor Bill de Blasio’s show, literally and figuratively. Celebration was the central theme of the day, but politics certainly played a part. In a year defined by the subordinate institutional role and power of the mayor in dealing with the governor and state government this was an unabashed City moment. Mayor de Blasio capitalized on it, with a well-executed parade and an uplifting and well-timed ceremony afterwards.

Governor Cuomo joined in, although seemingly wanting to participate on his own terms. He rode a float with two of the biggest stars, Abby Wambach and Hope Solo, but skipped the mayor’s pre-parade reception for the team and post-parade ceremony in City Hall Plaza. He spoke briefly with the press upon his arrival, but did not see or speak with Mayor de Blasio, hopping into his car just outside the gates of City Hall at the end of the parade.

(Cuomo spoke with the press at the head of the ticker tape parade today for the World Cup champion U.S. women’s soccer team and had to walk back to his assigned float as the parade got underway, producing this wrong-way traffic moment.)